Sterling/Dollar Market Rises as King Points to Recovery
In mid-morning trading, the FTSE 100 spread trading market is under a degree of selling pressure, down 15 points on options expiry day.
Upward momentum for the London market has stalled this morning, but that doesn’t mean that investors have lost their appetite for more gains.
You only have to look back two days to see the conviction with which many regard this rally, when a sharp drop was turned around in the afternoon session.
For a second successive day, the sterling/dollar market is enjoying a rally, adding to gains above the $1.5000 level.
This is due in no small part to the outgoing Bank of England Governor, Sir Mervyn King, who says that he now thinks the recovery is in sight and that positive momentum is building.
It’s hard to tell whether Sir Mervyn is just having his own Nigel Lawson moment, but if a recovery is on its way Sir Mervyn must have excellent eyesight, since most of his fellow Britons aren’t seeing any improvement.
With plenty of US economic data on today’s horizon, including CPI, manufacturing figures and another Michigan confidence reading, there is the possibility that Wall Street will once again drag a reluctant FTSE higher.
Ahead of the open, we expect a slightly weak start for the Dow Jones, opening down 25 points around 14,515.
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Financial Market Comments from Chris Beauchamp, Market Analyst, IG Index.
The above comments do not constitute investment advice and Clean Financial accepts no responsibility for any use that may be made of them.
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